Using CLM and RFP systems for supplier agreement management

There is a lot of pressure on folks these days. Every profession has its unique challenges, but the procurement profession has it coming from several different directions. There’s the expectation of finding perfect suppliers, maintaining ideal supplier agreement management, and holding them accountable, while also pleasing internal customers and delivering on their needs. It’s playing the middleman and making everyone get along on both sides.  

Then there’s the advancement of technologies. While technology has provided a way to do many things faster and arguably better, it’s also sped up expectations for delivery and organization. Add this pressure of expectation to the delicate balance of managing suppliers and internal customers, and it’s enough to make you run screaming for the hills.  

Technology can also make your job more difficult because the tech itself lacks flexibility, is too expensive, or you must conform your processes to its capability. Maybe the tech only addresses a part of your problem or gives you an RFP system but doesn’t connect to your contract lifecycle management (CLM) software. Who needs more of a headache when you have all the other pressures on you as a procurement professional? 

But what if you could have a system that considers multiple nuances of Procurement and its pain points?  

Sourcing cycle time reduction with faster speed from RFP to contract  

Imagine, for example, that Operations has a project that needs sourcing from several different types of new suppliers. Instead of trying to remember all the suppliers that could fulfill these needs, you could rely on a Supplier Performance Evaluation score to tell you how each supplier is rated overall in their past contractual performance.  

Also, by centralizing the RFP to contract cycle you can create an efficient procurement process and improve collaboration and decision making. The more efficiently this cycle moves, the quicker decisions are made, which can result in better pricing terms as well as reducing the internal costs of managing the procurement process.  

And being able to generate a contract directly from a complete and awarded RFP saves time and improves accuracy With the RFP process sitting on a robust CLM platform, you now have visibility into the full spectrum of supplier relationships and contracts across geographies, departments, and business units.  

Efficiencies realized with centralized and streamlined RFP Management 

Managing multiple RFPs, RFIs and RFQs can be complex and time consuming. It can result in inconsistent documentation, confusion and miscommunication with suppliers, and lends itself prone to errors when manually comparing bids and proposals.  

Imagine generating a new RFP package, defined from criterion stored on the platform, with all needed templates, enclosures, and supporting documentation requests in one tidy place. Think of the time savings by clicking through and selecting applicable criteria to be included in your RFP and then only the suppliers that meet those needs will be sent the information. Customize your scoring criteria and weight, then award and generate the contract with a click of a button.

Have you started to envision your streamlined future? 

Improved supplier agreement management through automation 

How many times have you had to track down the email that a supplier sent you their W-9? You could have a portal where suppliers register and supply data so they can be added to the pool for consideration with any RFP. Everything would be in one place, and it’s the suppliers’ responsibility to put it there! And to put a cherry on top, imagine regularly scheduled (and automated) supplier performance evaluations conducted and stored for future reference!  

Reporting on performance and quality of suppliers has never been easier. 

AI streamlining the proposal process 

Artificial Intelligence (AI) can be used in a variety of ways, but one of the more spectacular is to take work off procurement’s plate. Imagine if you could build AI prompts that told your system when a request came through for a new contract, and, depending on its size and complexity, is routed to the appropriate person for review or signature. A real-life example we have is a contract for snowplowing the parking lot comes in for $500 – this automatically is sent for signature. A contract for a $5,000 consultant comes in – this goes to a paralegal for review. And if a $50,000 contract for a capital equipment acquisition, this is designated for the full review process. All of this is done automatically without taking up anyone’s time.  

Conclusion

In conclusion, navigating the complexities of supplier agreement management and procurement challenges doesn’t have to be a daunting task. With the right technology, such as a comprehensive RFP and supplier agreement management system integrated with a robust CLM platform, you can streamline processes, enhance collaboration, and improve decision-making. This not only saves time and reduces costs but also ensures compliance and boosts overall efficiency. Embrace these innovative solutions to transform your procurement operations and stay ahead in today’s fast-paced business environment.  

Reach out to us to learn more about how we can help you achieve your supplier agreement management goals!